Global markets tumble ahead of US debt vote

Global shares fell on Wednesday before a crucial vote in Washington on the US debt ceiling, while commodities and the yuan came under pressure after data highlighted faltering growth in the world’s second- largest economy.

The MSCI All- World Index of global shares, which is headed for its first monthly decline since February, was down 0.4% in mid- morning trade in Europe, largely due to declines across

Asian markets.

US stock index futures fell by 0.3%0.4%. Data shows China’s manufacturing activity fell more than expected in May, while services growth — which has been one of the few bright spots in its patchy recovery — slackened to its slowest pace in four months.

For any investors hoping for a sustained bounce in Chinese growth after the elimination of stringent Covid- 19 restrictions late last year, the figures offer more evidence that the economy is losing steam, further dimming the global outlook.

“If the market was hoping for China to come to the rescue, I think, on this occasion, they’re mistaken,” CMC Markets strategist Michael Hewson said. “Covid has done a lot of structural damage to the Chinese economy.”